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Types of Consumer Behavior A consumer’s buying decision depends on the type of products that they need to buy. The behavior of a consumer while buying a coffee is a lot different while buying a car. Consumer buying behavior is determined by the level of involvement that a consumer shows towards a purchase decision. The amount of risk involved in a purchase also determines the buying behavior. Higher priced goods tend to high higher risk, thereby seeking higher involvement in buying decisions. 1. Complex buying behavior · Complex buying behavior is encountered particularly when consumers are buying an expensive product. In this infrequent transaction, consumers are highly involved in the purchase decision. Consumers will research thoroughly before committing to invest. · Consumer behaves very different when buying an expensive product or a product that is unfamiliar to him. When the risk of buying a product is very high, a consumer consults friends, family and experts before making the decision. · In complex buying behavior, the buyer will pass through a learning process. He will first develop beliefs about the product, then attitudes, and then making a thoughtful purchase choice. 2. Dissonance-reducing buying behavior · In dissonance-reducing buying behavior consumer involvement is very high. · This might be due to high price and infrequent purchase. · In addition, there is a low availability of choices with less significance differences among brands. · In this type, a consumer buys a product that is easily available. · Marketers should run after-sale service camps that deliver focused messaging. These campaigns should aim to support consumers and convince them to continue with their choice of their brand. These marketing campaigns should focus on building repeat purchases and referrals by offering discounts and incentives. 3. Habitual buying behavior · Habitual Buying Behavior is depicted when a consumer has low involvement in a purchase decision. · In this case the consumer is perceiving only a few significant differences between brands. · When consumers are buying products that they use for their daily routine, they do not put a lot of thought. They either buy their favorite brand or the one that they use regularly – or the one available in the store or the one that costs the least. · Habitual buying behavior is influenced by radio, television and print media. Moreover, consumers are buying based on brand familiarity. Hence marketers must use repetitive advertisements to build brand familiarity. · Further to initiate product trial, marketers should use tactics like price drop promotions and sales promotions. · Marketers should attract consumers using visual symbols and imagery in their advertising. Consumers can easily remember visual advertisements and can associate with a brand. 4. Variety seeking buying behavior · In variety seeking consumer behavior, consumer involvement is low. · There are significant differences between brands. Here consumers often do a lot of brand switching. · The cost of switching products is low, and hence consumers might want to try out new products just out of curiosity or boredom. · Consumers here, generally buy different products not because of dissatisfaction but mainly with an urge to seek variety. · Marketers avoid out-of-stock conditions, sponsor frequent advertising, offer lower prices, discounts, deals, coupons and free samples to attract consumers. Types of purchase or consumer decision Types of Consumer Problems Consumer encounters various types of problem in their daily life. Either they involve low involvement product , medium involvement product or high involvement product. There are two types of consumer problems; · Active Problem and · Inactive Problem Active Problem · An active problem is one the consumer is aware of or will become aware of in normal course of events. · Marketing strategy: Only require marketer to convince consumers that its brand is the superior solution Inactive Problem · An inactive problem is one of which the consumer is not aware. · Marketing strategy: Marketer must convince consumers that they have the problem AND that their brand is a superior solution. Routine problems: Expected, require immediate solution. ´Emergency problems: Not expected, require immediate solution. ´Planning problems: Expected, don’t require immediate solution. ´Evolving problems: Not expected, don’t require immediate solution. The Desire to Resolve Recognized Problems Depends on two factors: 1. The magnitude of the discrepancy between the desired state and the actual state. 2. The relative importance of the problem. Uncontrollable Determinants of Problem Recognition Variety-seeking is a challenge to marketers because it means that consumers switch brands for reasons beyond a company’s control. Sensory-specific satiety (declining satisfaction) consumers get bored (satiated) with sensory attributes (consumption of certain type of food) more than on non-sensory attributes. Offering variety on key sensory attributes can increase loyalty to the brand even if consumers engage in variety seeking. Marketing Strategy and Problem Recognition · ´Discovering Consumer Problems · ´Responding to Consumer Problems · ´Helping Consumers Recognize Problems · ´Suppressing Problem Recognition Discovering Consumer Problems · A wide variety of approaches are used to determine the problems consumers face. – · ´Intuition: - the most common, however, the problem identified may be of low importance to most consumers. · ´Survey:- asks relatively large numbers of individuals about the problems they are facing- · ´Focus Groups: composed of 8 to 12 similar individuals brought together to discuss a particular topic; a moderator is present to keep the discussion moving and focused on the topic but otherwise free flowing. Responding to Consumer Problems · Activating problem recognition: Generic problem · e.g. dairy foods. When the problem is latent or of low importance. · ´selective e.g. one brand solution · Timing problem recognition e.g. winter colds: Heater Generator during Load sheading. · ´Suppressing problem recognition: · Avoid upsetting habitual buyers. · Effective quality control and distribution Helping Consumers Recognize Problems 1. Generic Problem Recognition involves a discrepancy that a variety of brands within a product category can reduce. Increasingproblem recognition generally results in an expansion of the total market. 2. Selective Problem Recognition involves a discrepancy only one brand can solve. Firms attempt to cause selective problem recognition to gain or maintain market share Suppressing Problem Recognition · Occasionally information is introduced in the market place that triggers problem recognition that some marketers prefer to avoid. Obviously marketers do not want their current customers to recognize problems with their brands. Effective quality control and distribution (limited out-of- stock situations) are important in this effort. · Packages and package inserts that assure the consumer of the wisdom of their purchase are also common.